All of my positions are locked and loaded, so I am just looking for supplemental income on a weekly basis with my remaining cash. APLD Buy 1000 shares @ market Sell covered call atm $7000 atm call premium is .82 - 1.07 0 dte Break even will be around $6, so being a 0 dte I could place the stop there and basically have zero risk on the trade.
The wheel is too hyped up, every youtuber swears by it. It works until it doesn't, once the stock falls outside your window of opportunity the wheel losses all its power and becomes a dud.
Yeah all the risk and none of the rewards! It can be ok but yes you can get trapped and have to wait it out with the wheel. I mean the same can happen with a call write, so might as well just skip the selling puts part. This guy gets it...I knew I couldn't be the only one to think of this.
So... if I understand correctly, the reddit degen is making 1 while risking up to 449, with a breakeven at -1.1% of QQQ Genius.
Another problem with the wheel is typically you want to be selling puts in a high IV environment, but you might get assigned and then get stuck holding the shares in a low IV environment depending what the catalyst was...it's better to buy-write the calls and get paid, and unload the shares.
Well that was terrible....I set a market order and got filled at $8.01 right before it dumped lol...so I moved the expiry out to NOV8 for a monthly income target. Symbol APLD $8.01 Shares 1000 Cost $8,010.00 Call strike 9 Contracts 10 Premium 0.6 Premium $600.00 Cost basis $7.41 Proceeds from sale $9,000.00 Profits $1,590.00 This is another perfect example of not letting positions get stopped out. I could have taken a $1200 loss 5 minutes after the trade, but instead have turned that into a $600 realized gain, and a potential $990 future gain.
I'll bite..If you love your underwater position, why not double down at much better prices?? And why not sell the put instead of leggings the buy write???